• Revenue: $150 million in Q1 2025, a 12% increase compared to the prior year period.

• Commercial Aftermarket Sales: Increased by 13% in Q1 2025 versus Q1 2024, and up 15% sequentially from Q4 2024.

• Commercial OEM Sales: Increased by 8% in Q1 2025 compared to the prior year period.

• Defense Sales: Increased by 30% in Q1 2025 due to strong demand and new product launches.

• Net Organic Sales Growth: 11.1% increase over the prior period.

• Gross Profit Margin: Increased by 370 basis points in Q1 2025 compared to the prior year period.

• Net Income: Increased by $13 million in Q1 2025.

• Adjusted EBITDA: Increased by $10 million in Q1 2025 versus Q1 2024.

• Adjusted EBITDA Margin: 37.6% in Q1 2025.

• 2025 Guidance - Net Sales: Between $482 million and $490 million.

• 2025 Guidance - Adjusted EBITDA: Between $182 million and $185 million.

• 2025 Guidance - Net Income: Between $59 million and $64 million.

• 2025 Guidance - EPS: Between $0.71 and $0.76 per share.

• Capital Expenditures: Approximately $14 million for 2025.

• Interest Expense: Approximately $28 million for 2025.

• Effective Tax Rate: Approximately 30% for 2025.

• Depreciation and Amortization: Approximately $51 million for 2025.

• Non-Cash Stock Compensation: Approximately $50 million for 2025.

• Fully Diluted Share Count: Approximately 97 million shares for 2025.

• Warning! GuruFocus has detected 4 Warning Sign with LOAR.

Release Date: May 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Loar Holdings Inc (NYSE:LOAR) achieved record sales of $150 million in Q1 2025, marking a 12% increase compared to the prior year.

• The company improved its margins by 160 basis points during Q1 2025, aligning with their annual guidance.

• Loar Holdings Inc (NYSE:LOAR) reported a significant increase in defense sales by 30%, driven by strong demand and new product launches.

• The company raised its guidance for commercial aftermarket growth to double digits, reflecting strong demand and record bookings.

• Loar Holdings Inc (NYSE:LOAR) is actively pursuing M&A opportunities, with a strong pipeline of potential acquisitions across various sectors.

Negative Points

• Despite strong performance, the defense sales are expected to be lumpy due to the nature of ordering patterns.

• The company faces temporary margin dilution from acquiring businesses with lower margins and costs associated with being a public company.

• Loar Holdings Inc (NYSE:LOAR) is experiencing noise in the market due to tariff discussions, although it has not significantly impacted their results yet.

• The commercial OEM sales growth was moderate at 8%, with some variability in demand across different platforms.

• The company is focusing heavily on talent acquisition and development to support growth, indicating potential challenges in scaling operations.